‘4.1.   Allegation of raw material distortions

The complainant has provided sufficient evidence that there may be raw material distortions in the country concerned regarding the product under investigation. According to the evidence provided by the complainant, there are no value added tax (“VAT”) refunds on exports of manganese ore in the country concerned. VAT refund reduction or withdrawal are listed in Article 7(2a), 2nd subparagraph of the basic Regulation, as one of the relevant raw material distortions. The evidence provided also shows that manganese ore accounts for well over the threshold of 17 % of the cost of production of the product under investigation in the country concerned as required by Article 7(2a), 5nd subparagraph of the basic Regulation. The comparison of the price of manganese ore in the PRC with the undistorted price of manganese ore sold in representative international markets shows that Chinese prices are below those of representative international markets pursuant to Article 7(2a), 2nd subparagraph of the basic Regulation.

Therefore, in accordance with Article 7(2a) of the basic Regulation, the investigation will examine the alleged distortions to assess whether, if relevant, a duty lower than the margin of dumping would be sufficient to remove injury. Should other distortions covered by Article 7(2a) of the basic Regulation be identified in the course of the investigation, the investigation may also cover these distortions.’

The following paragraph should be added after the third paragraph of point 5 of the Notice of initiation of 16 February 2023:

A new point 5.5.1. shall be inserted after the first two paragraphs of point 5.5. of the Notice of initiation of 16 February 2023 and shall read as follows:

‘5.5.1.   Procedure for the assessment of Union interest in case of allegations of raw material distortions

In cases of distortions on raw materials as identified in Article 7(2a) of the basic Regulation, the Commission will conduct a Union interest test as laid out in Article 7(2b) of that Regulation. If the Commission decides, when establishing the level of duties subject to Article 7 of that Regulation, to apply Article 7(2), it will carry out the Union interest test in accordance with Article 21 on the basis of the measures determined pursuant to Article 7(2).

Interested parties are invited to provide all pertinent information enabling the Commission to determine whether it is in the Union interest to set the level of the measures in accordance with Article 7(2a) of the basic Regulation. In particular, interested parties are invited to provide any information about spare capacities in the country concerned, competition for raw materials and the effect on supply chains for companies in the Union. In the absence of cooperation the Commission may conclude that it is in accordance with the Union interest to apply Article 7(2a) of the basic Regulation.

Should the Commission decide to apply Article 7(2) of the basic Regulation, a decision will be reached, pursuant to Article 21, as to whether the adoption of anti-dumping measures would not be against the Union interest. Union producers, importers and their representative associations, users and their representative associations, trade unions and representative consumer organisations are invited to provide the Commission with information on the Union interest. In order to participate in the investigation, representative consumer organisations have to demonstrate that there is an objective link between their activities and the product under investigation.

Information concerning the assessment of Union interest must be provided within 15 days of the date of publication of this Notice unless otherwise specified. This information may be provided either in a free format or by completing relevant parts of the questionnaires on raw material distortions prepared by the Commission. The information submitted will only be taken into account if supported by factual evidence at the time of submission. The questionnaires are available in the file for inspection by interested parties and on DG Trade’s website: